Implied Enterprise Value
$6.85B
13.3x Revenue Multiple
Operating EBITDA
$110.75M
21.5% Operating Margin
CBA Cost-Shield Value
$77.25M
Annual wage-race defense
20-Year Historical CAGR
14.6%
Outpacing S&P 500 (10.2%)
Enterprise Value Decomposition Waterfall
Bridge from Core EBITDA Base to Institutional Scarcity Premium ($M)
$6,850M Implied EV
Institutional Investment Memo Summary
Target Asset Profile
LA Lakers (Marquee Trophy Market)
Baseline Top-Line Revenue
$515.00M
Player Wage Cap (CBA 50%)
$257.50M
Scarcity & Trophy Asset Premium
$3.82B
PE Liquidity Alpha Factor
Active (+15% multiple expansion)
Benchmark Operating Yield
1.62% cash-on-cost yield
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The Economist Thesis: Why NBA Assets Command Sky-High Multiples
Unlike European football clubs that spend 65–75%+ of turnover competing in unconstrained open wage races (often wiping out operating margins), the NBA Collective Bargaining Agreement (CBA) guarantees that player costs remain fixed at precisely 50% of BRI.
This statutory cost shield generates an annual profit margin protection of $77.25M for this profile, enabling institutional PE funds to underwrite NBA franchises not as volatile sports clubs, but as bulletproof compounding media monopolies.